3


                        UNITED STATES
             SECURITIES AND EXCHANGE COMMISSION
                    Washington, DC 20549

                         FORM 10-QSB
 QUARTERLY REPORT FOR SMALL BUSINESS ISSUERS SUBJECT TO THE
               1934 ACT REPORTING REQUIREMENTS

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
   SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2002
Commission File No. 000-30253






                      MUSIC ETC., INC.
   (Exact name of registrant as specified in its charter)







Nevada                                            88-0426887
(State of organization) (I.R.S. Employer Identification No.)

8764 Carlitas Joy Court, Las Vegas, NV 89117
(Address of principal executive offices)

Registrant's telephone number, including area code (702) 228-
4688

Check whether the issuer (1) filed all reports required to
be file by Section 13 or 15(d) of the Exchange Act during
the past 12 months and (2) has been subject to such filing
requirements for the past 90 days.  Yes X

There are 6,000,000 shares of common stock outstanding as of
September 11, 2002.



                 PART I - FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

FINANCIAL STATEMENTS
                         MUSIC ETC., INC

                      FINANCIAL STATEMENTS

                            CONTENTS


                                                             PAGE



     Independent Reviewed Report                              1

     Financial Statements

          Balance Sheet                                       2

          Statement Of Operations                           3-4

          Statement Of Stockholders' Equity                   5

          Statement Of Cash Flows                           6-7

          Notes To Financial Statements                    8-11























James R. Bonzo
Certified Public Accountant


                   INDEPENDENT REVIEWED REPORT

Board of Directors
Music Etc., Inc.
Las Vegas, Nevada

I  have  reviewed the accompanying Balance Sheet of  Music  Etc.,
Inc.as of June 30, 2002, and the related statements of profit and
loss  and  notes  for  the period then ended in  accordance  with
standards  established  by the American  Institute  of  Certified
Public  Accountants. All information included in these  financial
statements is the representation of the management of Music Etc.,
Inc.

A  review consists principally of inquiries of the management  of
the  company  whose financial statements are being reviewed,  and
analytical   procedures  applied  to  financial  data.    It   is
substantially  less  in scope than an audit  in  accordance  with
generally accepted auditing standards, the objective of which  is
the  expression of an opinion regarding the financial  statements
taken as a whole.  Accordingly, I do not express such an opinion.

Based  on my review, I am not aware of any material modifications
that  should be made to the accompanying financial statements  in
order  for  them  to  be  in conformity with  generally  accepted
accounting principles.





/s/ James R. Bonzo
James R. Bonzo CPA Nevada #813



    09-06-02
   (date)









 4086 Spring Leaf Drive, Las Vegas, Nevada  89127 w Tel 702-367-
                     4483 w Fax 702-367-8864
_________________________________________________________________
Member of the American Institute of Certified Public Accountants
and  member of the Nevada Society of Certified Public Accountants
           Member of the Las Vegas Chamber of Commerce




                        MUSIC ETC., INC.
                  (A Development Stage Company)
                         BALANCE SHEETS

                    ASSETS
                                                    June           June
                                                   30,2002        31,2001
                                                 -----------     --------
CURRENT ASSETS
  Cash                                            $       0        $       0
                                                 ----------       ----------
  TOTAL CURRENT ASSETS                            $       0        $       0
                                                 ----------       ----------
  TOTAL ASSETS                                    $       0        $       0
                                                 ==========       ==========
     LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Officers Advances (Note 8)                      $   5,152        $   4,152
                                                 ----------       ----------
TOTAL CURRENT LIABILITIES                         $   5,152        $   4,152
                                                 ----------       ----------
STOCKHOLDERS EQUITY (Note 4)

Preferred Stock, $0.001 Par Value
Authorized 10,000,000 Shares
Issued and Outstanding
At June 30, 2002 - None                               $   0

Common stock, $.001 par value
authorized 50,000,000 shares
issued and outstanding at
June 30, 2001 - 6,000,000 shares                                   $   6,000
June 30, 2002 - 6,000,000 shares                  $   6,000

Additional paid in Capital                        $  -2,315        $  -2,315

Deficit Accumulated during
development stage                                 $  -8,837        $  -7,837
                                                 ----------       ----------

TOTAL STOCKHOLDERS' EQUITY                        $  -5,152        $  -4,152
                                                 ----------       ----------

TOTAL LIABILITIES AND
STOCKHOLDERS EQUITY                               $       0        $       0
                                                 ==========       ==========

         See accompanying notes to financial statements
                              - 2 -



                        MUSIC ETC., INC.
                  (A Development Stage Company)
                     STATEMENT OF OPERATIONS


                                 Six            Six
                                Months         Months    Sept. 20, 1993
                                Ended          Ended       (Inception)
                                 June           June         to June
                               30,2002        30,2001        30,2002

INCOME
Revenue                           $   0          $   0          $   0
                              ---------      ---------     ----------
TOTAL INCOME                      $   0          $   0          $   0

EXPENSES

General, Selling
and Administrative            $   8,837        $   885      $   8,837

Amortization                      $   0          $   0          $   0
                              ---------      ---------     ----------
TOTAL EXPENSES                    $   0          $   0      $   8,837


NET PROFIT (LOSS)                $   -0          $   0     $   -8,837
                              =========      =========     ==========
NET PROFIT (LOSS)
per share -  (Note 2)         $   (NIL)      $   (NIL)      $   (NIL)
                              ---------      ---------     ----------

AVERAGE NUMBER OF
SHARES OF COMMON
STOCK OUTSTANDING             6,000,000      6,000,000      6,000,000
                              =========      =========     ==========



         See accompanying notes to financial statements
                              - 3 -




                        MUSIC ETC., INC.
                  (A Development Stage Company)
                     STATEMENT OF OPERATIONS


                              Year            Year      Sep. 20, 1993
                              Ended          Ended       (Inception)
                            December        December       to June
                            31, 2001        31, 2000       30, 2002

INCOME
Revenue                        $     0         $      0        $     0
                            ----------       ----------     ----------
TOTAL INCOME                   $     0         $      0        $     0

EXPENSES

General, Selling
and Administrative             $   885         $  3,000        $ 8,837
Amortization                   $     0         $      0        $     0
                            ----------       ----------     ----------
TOTAL EXPENSES                 $   885         $  3,000        $ 8,837
                            ==========       ==========     ==========
NET PROFIT (LOSS)              $  -885         $ -3,000        $-8,837
                            ==========       ==========     ==========
NET PROFIT (LOSS)
PER SHARE (Note #2)            $ (NIL)         $  (NIL)        $ (NIL)
                            ----------       ----------     ----------

AVERAGE NUMBER OF
SHARES OF COMMON
STOCK OUTSTANDING            6,000,000        6,000,000      6,000,000
                            ----------       ----------     ----------









         See accompanying notes to financial statements
                              - 4 -




                        MUSIC ETC., INC.
                  (A Development Stage Company)
          STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                          June 30, 2002


                             Common Stock                      (Deficit)
                            --------------                    Accumulated
                         Number                   Additional     During
                           of                      paid-in    Development
                         Shares        Amount      Capital       Stage
                        ---------    ---------    ----------   ----------

Balance,
December 31, 1998           25,000     $   3,685        $   0   $   -3,685


Changed from no par
Value to $0.001
September 21, 1999                     $  -3,660    $   3,660

Forward Stock Split
240 to 1
September 21, 1999       5,975,000                  $   5,975   $   -5,975

Net loss
December 31, 1999                                                 $   -267
                       -----------    ----------   ----------   ----------
Balance Dec. 31, 1999    6,000,000     $   6,000   $   -2,315   $   -3,952

Net loss
December 31, 2000                                                $  -3,000
                       -----------    ----------   ----------   ----------
Balance Dec. 31, 2000    6,000,000     $   6,000   $   -2,315   $   -6,952

Net loss
December 31, 2001                                                 $   -885
                       -----------    ----------   ----------   ----------
Balance Dec. 31, 2001    6,000,000     $   6,000   $   -2,315   $   -7,837

Net loss
June 30, 2002                                                     $   -885
                       -----------    ----------   ----------   ----------
Balance June 30, 2002    6,000,000     $   6,000   $   -2,315   $   -8,837

Balance
June 30, 2002            6,000,000     $   6,000   $   -2,315   $   -8,837
                       -----------    ----------   ----------   ----------


         See accompanying notes to financial statements
                              - 5 -




                        MUSIC ETC., INC.
                  (A Development Stage Company)
                     STATEMENT OF CASH FLOWS


                                    Six            Six
                                  Months         Months      Sept 20,1993
                                   Ended          Ended       (Inception)
                                   June           June          to June
                                 30, 2002       30, 2001       30, 2002


CASH FLOW FROM
OPERATING ACTIVITIES

Net (Loss)                         $ -8,837        $ -7,837       $ -8,837

Adjustment to reconcile
net loss to net cash
provided by operating
activities

Amortization                       $      0        $      0       $      0
Officer Advances                   $  5,152        $  4,152       $  5,152
                                  ---------       ---------      ---------
Net cash used in
Operating activities               $ -5,152        $ -4,152       $ -3,685


CASH FLOW FROM
FINANCING ACTIVITIES
Issue Common Stock                 $  3,685        $  3,685       $  3,685
                                  ---------       ---------      ---------
Net Increase
(decrease) in cash                 $      0        $      0       $      0

Cash, Beginning
Of period                          $      0        $      0       $      0
                                  ---------       ---------      ---------
Cash, End
Of Period                          $      0        $      0       $      0
                                  ---------       ---------      ---------








         See accompanying notes to financial statements
                              - 6 -



                        MUSIC ETC., INC.
                  (A Development Stage Company)
                     STATEMENT OF CASH FLOWS

                                   Year           Year      Sept. 20, 1993
                                  Ended           Ended      (Inception)
                                 December       December       to June
                                 31, 2001       31, 2000       30, 2002
CASH FLOW FROM
OPERATING ACTIVITIES

Net (Loss)                         $  -885        $  -3,000      $  -8,837

Adjustment to reconcile
net loss to net cash
provided by operating
activities

Amortization                          $  0             $  0           $  0
Officer Advances                    $  885         $  3,000       $  5,152
                                ----------        ---------      ---------
Net cash used in
Operating activities                  $  0             $  0      $  -3,685

CASH FLOW FROM
FINANCING ACTIVITIES
Issue Common Stock                    $  0             $  0       $  3,685
                                ----------        ---------      ---------
Net Increase
(decrease) in cash                    $  0             $  0           $  0

Cash, Beginning
Of period                             $  0             $  0           $  0
                                ----------        ---------      ---------

Cash, End
Of Period                             $  0             $  0           $  0
                                ----------        ---------      ---------








         See accompanying notes to financial statements
                              - 7 -




                        MUSIC ETC., INC.
                  (A Development Stage Company)
                  NOTES TO FINANCIAL STATEMENTS
                June 30, 2002 and March 31, 2001



NOTE 1 -ORGANIZATION AND ACCOUNTING POLICIES

         The Company was incorporated September 20, 1993 under
the laws of the State of Nevada. The Company was organized to
engage in any lawful activity. The Company currently has no
operations and, in accordance with SFAS #7, is considered a
development stage company.  The will develop a web site charging
subscribers a fee for each internet music lesson.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Accounting Method
          The Company records income and expenses on the accrual
          method of accounting.

     Estimates
          The preparation of financial statements in conformity
          with generally accepted accounting principles requires
          management to make estimates and assumptions that
          affect the reported amounts of assets and liabilities
          and disclosure of contingent assets and liabilities at
          the date of the financial statements and the reported
          amounts of revenue and expenses during the reporting
          period. Actual results could differ from those
          estimates.

     Cash and equivalents
          The Company maintains a cash balance in a non-interest
          bearing bank that currently does not exceed federally
          insured limits. For the purpose of the statements of
          cash flows, all highly liquid investments with the
          maturity of three months or less are considered to be
          cash equivalents. There are no cash equivalents as of
          June 30, 2002.

     Income Taxes
          Income taxes are provided for using the liability
          method of accounting in accordance with Statement of
          Financial Accounting Standards No. 109 (SFAS #109)
          "Accounting for Income Taxes". A deferred tax asset or
          liability is recorded for all temporary differences
          between financial and tax reporting. Deferred tax
          expense (benefit) results from the net change during
          the year of deferred tax assets and liabilities.



                               -8-



                        MUSIC ETC., INC.
                  (A Development Stage Company)
                  NOTES TO FINANCIAL STATEMENTS
                June 30, 2002 and March 31, 2001



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

     Reporting on Costs of Start-Up Activities
          In April 1998, the American Institute of Certified
          Public Accountants issued Statement of position 98-5
          ("SOP 98-5"), "Reporting the Costs of Start-up
          Activities" which provides guidance on the financial
          reporting of start-up costs and organizational costs.
          It requires costs of start-up activities and
          organizational costs to be expensed as incurred. SOP
          98-5 is effective for fiscal years beginning after
          December 15, 1998 with initial adoption reported as
          the cumulative effect of a change in accounting
          principle.

     Loss Per Share
          Net loss per share is provided in accordance with
          Statement of Financial Accounting Standards No. 128
          (SFAS #128) "Earnings Per Share".  Basic loss per
          share is computed by dividing losses available to
          common stockholders by the weighted average number of
          common shares outstanding during the period. Diluted
          loss per share reflects per share amounts that would
          have resulted if dilutive common stock equivalents had
          been converted to common stock. As of June 30, 2002
          the Company had no dilutive common stock equivalents
          such as stock options.

     Year End
          The  Company has selected December 31st as  its  fiscal
          year end.

     Year 2000 Disclosure
          The year 2000 issue had no effect on the Company.

NOTE 3 - INCOME TAXES

     There is no provision for income taxes for the year ended
     December 31,2001. The Company's total deferred tax asset as
     of June 30, 2002 is as follows:

     Net operating loss carry forward           $8,837
     Valuation allowance                        $8,837
     Net deferred tax asset                     $    0

     The federal net operating loss carry forward will expire
     in 2017 to 2019.



                               -9-




                        MUSIC ETC., INC.
                  (A Development Stage Company)
                  NOTES TO FINANCIAL STATEMENTS
                June 30, 2002 and March 31, 2001


NOTE 4 STOCKHOLDER'S EQUITY
     Common Stock
          The authorized common stock of the Company consists of
          50,000,000 shares with a par value of $0.001 per
          share.

          On July 27, 1995 the Company issued 20 shares of its
          no par value common stock in consideration of $200 in
          cash to one of its directors.

          On July 27, 1997 the Company issued 24,980 shares of
          its no par value common stock in consideration of
          $5,996 in cash to three of its directors.

          On September 21, 1999 the State of Nevada approved the
          Company's restated Articles of Incorporation that
          increased its capitalization from 25,000 common shares
          of no par value to 50,000,000 common shares with a par
          value of $0.001 and added 10,000,000 preferred shares
          with a par value of $0.001.

          On September 21, 1999 the Company forward split its
          common stock 240:1 thus increasing the number of
          outstanding common shares from 25,000 to 6,000,000
          shares.

     Preferred Stock
          The authorized preferred stock of the Company consists
          of 10,000,000 shares with a par value of $0.001 per
          share.

NOTE 5 GOING CONCERN.

          The Company's financial statements are prepared using
          generally accepted accounting principles applicable to
          a going concern, which contemplates the realization of
          assets and liquidation of liabilities in the normal
          course of business. However, the Company does not have
          significant cash or other material assets, nor does it
          have an established source of revenues sufficient to
          cover its operating costs and to allow it to continue
          as a going concern.







                              -10-



                        MUSIC ETC., INC.
                  (A Development Stage Company)
                  NOTES TO FINANCIAL STATEMENTS
                June 30, 2002 and March 31, 2001

NOTE 6 -RELATED PARTY TRANSACTIONS

     The Company neither owns nor leases any real or personal
     property. An officer of the Company provides office services
     without charge. Such costs are immaterial to the financial
     statements and accordingly, have not been reflected therein.
     the officers and directors of the Company are involved in
     other business opportunities. If a specific business
     opportunity becomes available, such persons may face a
     conflict in selecting between the Company and their other
     business interests. The Company has not formulated a policy
     for the resolution of such conflicts.

NOTE 7 -WARRANTS AND OPTIONS

     There are no warrants or options outstanding to acquire any
     additional shares of common or preferred stock.

NOTE 8 -OFFICER ADVANCES

     While the Company was seeking additional capital to advance
     its business plan, an officer of the Company has advanced
     funds on behalf of the Company to pay for any costs
     incurred by it. These funds are interest free.


















                              -11-




ITEM 2.   MANAGEMENT'S PLAN OF OPERATION

NOTE REGARDING PROJECTIONS AND FORWARD LOOKING STATEMENTS

This   report   contains  statements  that  are   forward-looking
statements  within  the meaning of the federal  securities  laws.
These   include  statements  about  our  expectations,   beliefs,
intentions  or  strategies for the future, which we  indicate  by
words  or  phrases  such  as  "anticipate,"  "expect,"  "intend,"
"plan,"  "will," "believe" and similar language. These statements
involve  known and unknown risks, including those resulting  from
economic  and  market conditions, the regulatory  environment  in
which  we  operate,  competitive activities, and  other  business
conditions, and are subject to uncertainties and assumptions  set
forth  elsewhere  in  this  registration  statement.  Our  actual
results  may differ materially from results anticipated in  these
forward-looking   statements.   We   base   our   forward-looking
statements  on  information currently available  to  us,  and  we
assume no obligation to update these statements.

                        Plan of Operation

We are in the developmental stage and have no established
source of revenue. We believe we will need at least $300,000 in
order to be able to continue with our development operations.
We are currently developing a business plan to market our web
site, which will enable users to learn to play musical
instruments online through the varying levels of music lessons
we intend to make available shortly after becoming operational.
We plan to take the following steps that we believe will be
sufficient to provide us with the ability to continue in
existence:

1.   Management believes we will need to raise between
     US$300,000 and US$500,000 over the next 12 months which we
     will utilize in contracting web hosts, which will provide
     the services of web page designers and consultants to help
     us devise a curriculum which will be viable to teach music
     lessons online. We believe that the amount to contract a
     web host is nominal but would require a monthly service
     charge ranging from $20 to $45 per month. There may be a
     set-up or activation fee, which would be approximately $500
     to $1,000. The exact amount we will need to raise will be
     determined by the then current market conditions, and the
     status of cash flow within Music Etc. It is anticipated
     that an initial injection of US$300,000 will be required
     within the next 12 months. We propose to raise the amount
     we need by selling shares of our common stock through this
     offering followed by one or more private placements if
     necessary. Should we not be able to raise any funding
     through this offering, we are researching other
     possibilities to raise funds. We have been researching
     ideas to raise funds through either private placements or
     through certain government loans or commercial loans.

2.   We hope to generate revenue from the marketing of our web
     site to offer music lessons online.  This is expected to be
     conducted upon the completion of this offering and
     availability of funds, if we are successful in raising
     funding through this offering.  We have conducted minimal
     research as to the best way to market our web site. Our
     research efforts have been limited to information obtained
     from the Internet regarding start up businesses.  Music
     Etc. does not currently have any formal contracts with any
     internet sites or web hosts. Music Etc., Inc., will develop
     a web page with hyperlinks on Unified School District Web
     Pages directing interested parties to Music Etc., Inc.'s.
     Web page, once our web page is operational.

3.   Management may find it necessary to raise additional funds
     to impliment the business plan of Music Etc., Inc.  Manage
     intends to raise these additional funds through the
     issuance of shares of its common stock.  This action would
     ultimately dilute the holdings of any current shareholder.

4.   We intend to launch our website with the aid of consultants
     within the music industry. These consultants will be paid
     on a per project basis, initially, from the proceeds raised
     in this offering. Once we have generated revenue and
     profits enough to sustain our working capital on an ongoing
     basis, we will hire these individuals on a part- to full-
     time basis. We have not identified any consultants in the
     music industry to date. However, we plan to investigate any
     possibilities of hiring consultants within the next 12
     months. We feel that we will be able to hire at least one
     to two consultants within the next 12 months, assuming all
     of the shares being offered at the offering price of $0.10
     per share are sold.  We  have only estimated the cost of
     the consultants and any fees associated with these
     consultants.

We do not know the minimum amount we will need in any of the
above areas to begin our operations.

We intend to utilize one or more of the credit card processing
services to provide our students the option to either pay online
with a credit card or have payments deducted straight from their
checking accounts. These services will range anywhere from
$10/month and $0.25 per transaction fee through CardService
International, Inc. to $44.95/per month, which includes the
processing fee, for a period of 24 months from iTransact.com
(for each transaction over 500 is subject to a $0.10 per
transaction fee).

We also intend to utilize the services of website managers and
designers in order to keep our operating costs down. Prices for
services which will design our website as well as manage the
site range anywhere from $19.95/month to $45/month, some with a
start up fee, for the small to medium sized businesses just
getting started. Many of these web-hosting services also include
ISP services included in the monthly fees. Eventually, in the
future, we intend to hire a full-time web page designer and
manager once our operations grow to a capacity, which will
require our own staff.

              Competition Music Etc. may encounter

Currently, there are many sites that offer music lessons online.
We intend to offer a variety of different lessons, from which the
student would be able to choose. Since we have not yet begun our
operations and intend to implement our business plan through the
proceeds raised in this offering, it will be difficult for us to
find a niche in the music industry. These other companies have
greater financial resources and are already established, making
it more difficult for us to generate revenue within the first
year, if we are able to raise enough funds to finance our
ultimate goals and begin a web site.

                            Employees

We are currently in a start-up phase with no employees, other
than our management. It is expected that as funds become
available additional staff will be hired. All future employees
will be hired under an equal opportunity policy and evaluated by
their manager on a regular basis with regard to merit raises and
advancements. We do, however, intend to hire consultants,
initially through part of the proceeds raised in this offering.
These consultants will be hired on a part-time case-by-case
basis. We intend to hire software development consultants and
accomplished music teachers on a full time basis.  Internet web
networking consultants, computer networking consultants and web
graphic design consultants will be hired on a part-time basis.

                   PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

The  Company  is  not  a  party  to any  material  pending  legal
proceedings and, to the best of its knowledge, no such action has
been threatened by or against the Company.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No such matters were submitted during the most recent quarter.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K.

EXHIBITS

3.1   The  exhibits,  consisting of  the  Company's  Articles  of
Incorporation, are attached to the Company's Amended Form  10-SB,
filed  on  June  23,  2000. These exhibits  are  incorporated  by
reference to that Form.

3.2   The  exhibits,  consisting of  the  Company's  Bylaws,  are
attached  to the Company's Amended Form 10-SB, filed on June  23,
2000. These exhibits are incorporated by reference to that Form.

23.1  Consent of James R. Bonzo, Certified Public Accountant

                           SIGNATURES

Pursuant  to  the  requirements of Section 12 of  the  Securities
Exchange  Act  of  1934,  the Registrant  has  duly  caused  this
registration  statement  to  be  signed  on  its  behalf  by  the
undersigned, thereunto duly authorized.

                           Music Etc., Inc.


                           By: /s/ Lewis Eslick
                              Lewis Eslick, President

                           Date: September 11, 2002